Buyer Beware: Georgia Consumers Can't Rely on the Fair Business Practices Act

Abstract

In Novare Group, Inc. v. Sarif, the Georgia Supreme Court rejected the plaintiffs' claim that the defendant brokers and developers violated the Georgia Fair Business Practices Act ("FBPA"), Georgia's primary consumer protection statute. The author contends that the court's approach in Novare undermines the Georgia General Assembly's purpose in enacting the FBPA to protect consumers from unfair or deceptive practices. The article criticizes the court for treating claims under the FBPA the same as common law fraud claims. It also examines the court's treatment of reliance, parol evidence, merger clauses and legislative silence. Finally, the article discusses the implications for future actions seeking redress for FBPA violations.

Keywords: Georgia, Fair Business Practices Act, consumer protection, statutory interpretation, reliance, parol evidence, merger, legislative silence

JEL Classification: K12, K19, K29, K30, K39